Support and Resistance (MTF)

The Support and Resistance (MTF) indicator is a multi-timeframe tool designed to automatically identify and visualize key market levels across up to three different timeframes simultaneously. It provides traders with a holistic view of market dynamics by integrating data from various horizons to highlight significant zones where price action is likely to react.

Usage

The indicator can be used to identify potential entry, exit, and reversal points by plotting support and resistance levels from multiple timeframes on a single chart. This helps traders confirm levels that have significance across different periodicities, increasing the probability of successful trades.

Key Features:

• Multi-Timeframe Integration: Display levels from three distinct timeframes to see where long-term and short-term levels overlap.
• Zones vs. Lines: Toggle between precise lines or adaptive zones to better represent areas of liquidity.
• Breaks and Retests: Visualize market transitions with "B" labels for breakouts and "R" labels for retests.
• False Breakout Filtering: Use volume-based logic to filter out low-conviction breakouts.
• Dynamic Visuals: Choose to expand lines infinitely or clamp them to their valid duration.

Details

The script identifies levels based on pivot highs and lows. The "Strength" setting dictates how many times a level must be tested before it is displayed. This ensures that only significant market structure is highlighted.

For breakout detection, the algorithm monitors price action relative to the identified levels. If "Avoid False Breaks" is enabled, the script compares the breakout candle's volume to a moving average of volume; if the volume does not exceed the user-defined threshold, the breakout is ignored to prevent "whipsaw" signals.

Settings

General Configuration

• Pivot Length: Sets the lookback period for finding high and low pivots. Higher values result in more significant, longer-term levels.
• Strength: Determines the minimum number of touches required for a level to be considered valid (1-3).
• Invalidation: Choose whether a level is broken by a wick touch or a candle close.
• Expand Lines & Zones: Controls the horizontal extension of the levels (All, Only Valid, or None).

Timeframes

• Timeframe 1-3: Enable or disable up to three independent timeframes and select their respective periods (e.g., Daily, Weekly).

Breaks & Retests

• Show Breaks: Displays labels when price successfully breaks through a level.
• Show Retests: Displays labels when price returns to touch a previously established level.
• Avoid False Breaks: Enables volume filtering to validate breakout signals.
• Break Volume Threshold: Sets the percentage by which volume must exceed the average to confirm a break.
• Inverse Color After Broken: If enabled, support turns to resistance (and vice versa) after a break.

Style

• Style Mode: Switch between "Lines" and "Zones".
• Zone Width: Adjusts the thickness of the support and resistance zones.
• Colors: Customize the colors for support, resistance, and breakout labels.

FAQ

How do I use multiple timeframes? Navigate to the "Timeframes" section in the settings and check the boxes for Timeframe 2 and 3. Select the desired periods from the dropdown menus to see higher-timeframe levels on your current chart.

What does the "Strength" setting do? The Strength setting filters levels based on their historical significance. A strength of 3 means the price must have reacted at that specific price level at least three times to be drawn.

How can I access the Support and Resistance (MTF) tool? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.